Orient Green Power Company Ltd · NSE:GREENPOWER
Orient Green Power — Investor Presentation (May 2017)
34 slides from Orient Green Power's investor presentation, May 2017
Slide 1: Orient Green Power Company Limited Corporate Presentation
ORIENT GREEN POWER COMPANY LIMITED CORPORATE PRESENTATION May, 2017
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Orient Green Power Company Ltd. (also referred to as ‘OGPL’ or ‘Company’). By attending a meeting where this presentation is m
Slide 3: Table of Contents
Table of Contents Company Overview 4 Investment Highlights 12 Strategic Initiatives 14 Business Outlook & Regulatory 19 Management Overview 23 Industry Overview 25 Recent Performance – FY17 29 3
Slide 4: Company Overview
Company Overview 4
Slide 5: An Independent Power Producer of Renewable Assets
An Independent Power Producer of Renewable Assets Company Overview Positive Macros & Strategic Initiatives leading to improved performance • Incorporated in 2006, Orient Green Power Co. Ltd. (OGPL) is the only • Significant improvement in Grid Availability in TN from a level of 60% three listed Indi
Slide 6: Strong Ownership and Support From Quality Investors
Strong Ownership and Support From Quality Investors Financial Investors Corporate Sponsor Diversified Shareholding (Mar 2017) • Promoter’s have invested Rs. 300 Crore in two tranches in recent years Others • Transaction undertaken at fair value – validation of commitment, intent and 21.7% growth pot
Slide 7: Diversified Portfolio Of Renewable Energy
Diversified Portfolio Of Renewable Energy • Wind aggregating 425 MW constitutes ~82% of OGPL’s overall commissioned portfolio MW • Biomass aggregating 96 MW constitutes ~18% of OGPL’s overall portfolio Segment 425 96 521 • The Company uses various fuel sources such as mustard husk, bagasse, julie fl
Slide 8: OGPL Projects Spread Geographically
OGPL Projects Spread Geographically Wind Biomass National Institute of Wind Energy 8
Slide 9: OGPL's Wind Portfolio - India
OGPL’s Wind Portfolio - India Commissioned Assets SPV State Capacity (MW) Commissioning Status Off-take Arrangement Assets acquired between Sep 2007 to Mar 2008 Bharat AP 26 Long term PPA with SEB (CoD in 1999-2000) Assets acquired between Jun 2008 to Dec 2009 Clarion TN 92 Sale through Group Captiv
Slide 10: OGPL's Biomass Portfolio
OGPL’s Biomass Portfolio Commissioned Assets Project State Capacity (MW) Commissioning Status Off-take Arrangement Chippabarod RJ 8.0 Feb-2010 Long term PPA with Rajasthan utilities Kishanganj RJ 8.0 Oct-2013 Long term PPA with Rajasthan utilities Narsinghpur MP 10.0 Jan-2014 Long term PPA with MP u
Slide 11: Off-Take Arrangement Providing Revenue Stability, Security & Growth
Off-Take Arrangement Providing Revenue Stability, Security & Growth Revenue Mix (FY’2017) Revenue Mix (FY’2016) 9% 2% 8% 2% 0% 1% 52% 50% 37% 39% Revenue Mix (FY’2015) Revenue Mix (FY’2014) 9% 2% 12% 1% 3% 13% 15% 60% 16% 69% Group Captive FIT Third Party REC GBI 11
Slide 12: Investment Highlights
Investment Highlights 12
Slide 13: Strong Business Model Supported by Large Potential
Strong Business Model Supported by Large Potential Significant improvement in Grid Availability in TN Only listed pure play Renewable Energy Generation Company in India Strong business model with good mix of revenue from PPAs and Group Captive Significant growth plans in high potential wind states w
Slide 14: Strategic Initiatives – Merger with IL&FS Wind and Demerger of Biomass Business
Strategic Initiatives – Merger with IL&FS Wind and Demerger of Biomass Business 14
Slide 15: Proposed Merger with wind business of IL&FS
Proposed Merger with wind business of IL&FS • On Jan 19th, ‘17 the Board of OGPL approved entering into an exclusivity period for evaluation of merger with the Wind business of IL&FS • On April 13th, ‘17 the Board extended the confidentiality & exclusivity period • The merger will bring together com
Slide 16: Demerger Rationale
Demerger Rationale … resulting in …facilitating improvement of increased … has resulted in Combination of two Demerger expected operational investment & contracted market different to lead concentrated performance strategic multiples for OGPL’s businesses… business focus… coupled with partnership fo
Slide 17: Scheme summary as Currently Proposed
Scheme summary as Currently Proposed Amalgamation of BWFL with OGPL and demerger of the Biomass Power Business into Biobijlee Green Power Limited (“BGPL”) Current Structure Resulting Entity - Biomass (BGPL) Demerged Entity – Wind (OGPL) Promoter Group Public Promoter Group Public Promoter Group Publ
Slide 18: Salient features of the Demerger Scheme
Salient features of the Demerger Scheme • Biomass power business undertaking along with investments in biomass power business SPVs to be demerged into SIHL Engineers Private Limited (‘SEPL’, wholly owned subsidiary of OGPL) • All assets and liabilities of Biomass business to be transferred at book v
Slide 19: Business Outlook & Regulatory Developments
Business Outlook & Regulatory Developments 19
Slide 20: Wind Business Outlook
Wind Business Outlook • Extended the repayment tenure of the majority of term loan portfolio in Beta wind assets under the 5:25 flexible structuring scheme for a tenure of 17 years ending 2033. This has improved the cash flows in FY17 and will sustain in the years to come • Favorable Macro Business
Slide 21: Capacity Expansion- Under Construction
Capacity Expansion- Under Construction Capex Project Capacity Estimated PLF COD Location to be incurred WTG supplier 1 Commentary name (MW) (INR mn) • Company is already having a capacity of 50 MW in the state of Andhra Pradesh • The new project of ~44 MW is being implemented in the same location as
Slide 22: Biomass Business Outlook
Biomass Business Outlook • Divestment on Track: – Sale of one unit (Rajasthan) has been completed – MoU to sell Kolhapur unit has been signed – Discussions are in advanced stages for sale of 3-4 more units – The proceeds from divestments will provide sufficient working capital to run the remaining u
Slide 23: Management Overview
Management Overview 23
Slide 24: Professional Management Team with Rich Experience
Professional Management Team with Rich Experience • Engineering Graduate from IIT and Management from IIM Mr. S Venkatachalam • Over 32 years experience across industry segments in areas of Manufacturing/ Marketing/ Supply chain/ Overall Management Managing Director & CEO • Experience in areas of Wi
Slide 25: Industry Overview
Industry Overview 25
Slide 26: Increasing Prominence Of Renewable Energy
Increasing Prominence Of Renewable Energy Installed Capacity as on 30th October 2016 Hydro Biomass 43.1 5.0 14.0% Nuclear 5.8 1.6% Solar 1.9% 8.5 2.8% Renewable, 45.9, SHP 14.9% Wind 4.3 28.1 1.4% Thermal 9.1% 212.5 69.2% Total Capacity: 307 GW Total Renewable Capacity: 45.9 GW Source: Central Elect
Slide 27: Wind Energy Industry Growth
Wind Energy Industry Growth Cumulative Wind Capacity in India MW 1,24,826 59,351 23,439 26,915 19,052 21,132 17,352 11,806 14,155 8,756 10,241 5,351 7,093 1,908 2,523 3,635 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2020E 2030E Tam
Slide 28: Shorter Execution Cycle Of Wind Projects
Shorter Execution Cycle Of Wind Projects Wind Resources & Assessment Land Acquisition and Approvals Wind (Entire Development Approx. 12 – 18 months Phase) Construction / Financial Evaluation Commissioning (45 days) Site Financial Evaluation Construction & Assessment Commissioning Biomass (Entire App
Slide 29: Recent Performance – FY17
Recent Performance – FY17 29
Slide 30: Strong Operating Performance
Strong Operating Performance Rs. Million Wind Biomass Total FY17 FY16 Change (%) FY17 FY16 Change (%) FY17 FY16 Change (%) REVENUES 3,837 3,078 +25% 777 1,022 -24% 4,613 4,100 +13% EBITDA 2,921 2,161 +35% 12 -23 +153% 2,933 2,318 +37% Margins% 76% 70% 2% -2% 64% 52% EBIT 1,553 801 +94% -306 -725 +57
Slide 31: Key Financial Highlights
Key Financial Highlights Wind Business: REC: Revenue increased by 25% to Rs. 3,837 mn in FY17 compared to OGPL sold 2.56 lakh Renewable Energy Certificates in FY17 Rs. 3,078 mn in FY16 aggregating Rs. 38.34 Crore. In FY16, OGPL sold 1.92 lakh RECs aggregating Rs. 28.82 Crore. Increase of 33% in
Slide 32: Other Developments & Outlook
Other Developments & Outlook • The Company had executed Share Purchase Agreement with Sindicatum Captive Energy Singapore Pte Limited (Sindicatum) to divest the entire stake held in its 20 MW co-generation power project (OGPML) in Kolhapur, Maharashtra. However, M/s. Padmashri Dr. D. Y. Patil Sahaka
Slide 33: Contact Us
Contact Us For further information please contact Mr. K.V. Kasturi - CFO Orient Green Power Company Limited Tel: +91 44 4901 5678 Email: kasturi.kv@orientgreenpower.com Mayank Vaswani / Suraj Digawalekar CDR India Tel: +91 22 6645 1230 / 1235 Email: mayank@cdr-india.com / suraj@cdr-india.com 33
Slide 34: Thank You
Thank You 34
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